Risk of Higher Vacancy Guarantee Costs for Rental Properties
First written in FY2018. 2 of 4 entries say "Restated". Latest entry: FY2021.
2 other companies' latest entry also says "Restated".
- FY2021RestatedAnnual report
「However, we believe that the risk could change in the future as Japan's population dynamics change over the medium to long term.」
While maintaining the explanation that the likelihood of materialization is low because the properties are condominiums for single occupants located near stations, the filing adds that the risk could change over the medium to long term due to demographic trends. - FY2020MitigatedAnnual report
「Because the investment properties sold by our Group are primarily condominiums for single occupants located near stations in major Japanese metropolitan areas, particularly Tokyo, we believe that the likelihood of this risk materializing is low.」
Regarding the risk of vacancy guarantee costs, the company explains that the likelihood of materialization is low based on the location and intended use of the properties, and adds property identification using AI and restoration to the original condition within a short period as measures. - FY2019RestatedAnnual report
「Although our Group is taking measures to reduce vacancy rates, if vacancies increase, rent guarantee costs could rise, affecting our Group's operating results and financial position.」
The risk of higher rent guarantee costs resulting from increased vacancies is reiterated while measures to reduce vacancy rates are being implemented. A provision for vacancy losses of ¥63.010 million has also been recorded. - FY2018First statedAnnual report
「If these measures are ineffective and vacancies increase, vacancy guarantee costs could rise, affecting our operating results and financial position.」
For rent guarantees on properties sold after sale when units are vacant, higher costs if measures to reduce the vacancy rate are ineffective are identified as a risk.